Buyers & Purchasers of Payments
People or businesses that buy structured settlement and annuity payments are the core of the secondary market. Finding out which buyer is right for you will provide you with the best price and experience.
Trying to figure out where to turn for getting money out of your annuity or structured settlement? We can help you find a buyer, explain what a buyer does and tell you what to look for in a good buyer that will work for you.
People interested in selling annuities and structured settlement payments turn to buyers in this secondary market. The secondary market started about 25 years ago and has grown dramatically in that time, maturing into a competitive and regulated industry. Buyers are individual investors and businesses that purchase payment streams in exchange for lump sums.
Whether you have a settlement from a personal injury, or an annuity you inherited from a family member, getting money in the near future requires finding a quality buyer who will deliver the best service available.
What is the Buyer's Role?
Buyers communicate with those interested in selling periodic payments, provide competitive offers and give sellers the cash they need to meet immediate financial needs.
Annuity and structured settlement payments can be purchased and then sold to investors for a higher price than originally purchased. This is known as refactoring because annuity payments are bought as smaller pieces, rather than a whole, and then resold.
Once buyers purchase annuity payments, they can invest profits to make greater returns, wait to receive income in the future or resell payments to a new client. Clients may be anyone from plaintiffs settling a personal injury case to investors looking for a fixed income with a higher yield than government securities.
The secondary market stays competitive as buyers use their available resources — providing up-front cash — and accept payments years down the line. For example, Annuity.org uses their resources to get you capital.
They purchase your payments at a discounted rate, but still receive the full value of the future payments. Their profit lies in the long-term payout. Meanwhile, you, the seller, benefit from having cash today, instead of waiting.
Your Buyer Checklist
As you begin your search for the best buyer, it can be difficult to know which buyer to choose. It's important to evaluate your options, and make sure the company you choose will provide the best annuity purchasing experience by keeping certain factors in mind. Because you are legally transferring rights to payments, you want a company that follows standard procedures and walks you through any necessary court proceedings.
Turn to Annuity.org for reliable professionals who will provide an experience tailored to meet your needs and enable you to get the most out of your money.
Keep this buyer checklist in mind as you complete the process:
- Helpful customer service representatives
- Competitive offer with an adequate payout
- Accurate net offer value
- Cash advance available
- Explanation of timeline for when you will receive money
- Record of customer satisfaction
- Familiarity with state laws
- Transparent disclosure of contract information
- Recommendation for consultation with lawyer or financial expert
Making sure these requirements are met can help you have a smooth selling process. Some final guidelines: Avoid companies that put undue pressure on you to buy immediately and have poor ratings.
What We Offer
Annuity.org has helped thousands of people sell their periodic payments to get cash fast and remains a leader in the annuity and structured settlement buying industry.
We provide cash advances for qualified cases, competitive pricing, flexible options for the number and timing of payment you wish to sell and informational resources. We also have years of experience assisting clients in all 50 states and a staff of seasoned buying analysts ready to answer your questions.
Selling Your Payments in the Secondary Market
The primary market for structured settlements is estimated at $6 billion in sales a year, and the secondary market buys its products from the primary market. As these businesses have developed, the industry has become highly regulated and closely monitored to protect the seller’s best interest.
Because there are about a dozen companies prominently involved in the secondary market, buying annuity payments, it makes sense to shop around and compare rates.
Remember that companies buying structured settlements are businesses trying to make money. They charge fees for their service, similar to the way banks charge fees for loans or credit card accounts. The fees for structured settlements pay for legal, administrative, recording, filing and miscellaneous work. These fees are usually factored into the settlement.
Once you have chosen a company, they should send you a contract and disclosure statement. You should review the contract and disclosure statement, either with your attorney or a financial advisor. When you sign it and return it to the company buying the annuity payments, they must file it with the appropriate court to get a judge’s approval.
The court then convenes a hearing and may ask you to attend the hearing to answer questions about why you want to sell the structured settlement. If the court agrees to the payout, the judge will approve the transfer and you will receive a lump-sum payment.
- Haithcock, S. (2013, October 29) Secondary market annuities boast higher yields. MarketWatch.com. Retrieved from: http://articles.marketwatch.com/story/secondary-annuity-market-boasts-higher-yields-2013-10-29?link=MW_home_latest_news
- Campbell, J. (ND) I want to Sell My Structured Settlement – What Is the Process. Ezinearticles.com. Retrieved from http://ezinearticles.com/?I-Want-to-Sell-My-Structured-Settlement---What-Is-the-Process?&id=6258055
- Hindert, P. (2012, August 7) “Only Half the Story” Retrieved from http://s2kmblog.typepad.com/rethinking_structured_set/model_structured_settlement_protection_act